Chapter 238: Shirakawa Electric's Listing Agreement
Facing Watanabe Ichiro's smiling face, Shirakawa Kaede also smiled and nodded.
“When I returned to my hometown during the New Year, I felt that Akita was backward compared to Tokyo.
Therefore, I would like to contribute a little to the economic development of my hometown to the best of my ability.
But because there are so many things to do in Tokyo, I can't leave for long.
So we can only trouble Mr. Arai to stay in Akita and take care of it for us."
"I see," Watanabe Ichiro nodded, "I heard that Mr. Shirakawa's investment in Akita this time involves a wide range of industries?"
"You can say that," Baichuan Feng said with a face that said nothing, "It involves manufacturing, tourism, local finance, and even the service industry.
After all, the place is remote and does not have such comprehensive industry services as Tokyo.
Therefore, in some areas, Baichuan can only reluctantly take action himself. "
"Shirakawa-san, that's wrong," Watanabe Ichiro said with regret, shaking his head, "Dai-ichi Kangyo Bank is also keen on investing in the local economy.
For example, in local finance, we have rich experience and a complete set of solutions to support local economic development.”
"Really? That's a pity." Baichuan Feng seemed to realize it belatedly and regretted his slow reaction.
We are all talented actors, no one is worse than anyone else.
"I think Mr. Arai seems to be having trouble coping." Ichiro Watanabe said with concern and consideration.
"I haven't been back to Tokyo for almost three months. How is it? Do you need any help from Daiichi Kansei Gin?"
"That's not necessary." Baichuan Feng declined Daiichi Kangyin's offer of help.
"Arai-san will be returning to Tokyo soon, and..." Shirakawa Kaede paused, "To be honest, this investment was also entrusted by the local government.
Local enterprises were in trouble and time was urgent. I had no time to think about it and decided to support my hometown company.
So we took emergency measures and provided some assistance in a timely manner.”
"So that's how it is." Watanabe Ichiro nodded in understanding and didn't ask any more questions.
Phew~ It’s finally over.
However, just after one round of confrontation, just when Baichuan Feng thought that the matter was over.
The other party suddenly changed the subject and went in another direction.
"Mr. Shirakawa, if I remember correctly, Shirakawa Electric has been established for almost two years, right?"
Baichuan Feng didn't know what he wanted to express, so he could only nod calmly.
"Indeed, in two or three months, it will be the second anniversary of Shirakawa Electric."
"It's been two years. Time flies." Ichiro Watanabe nodded with emotion.
Then he pointedly said, "Then in another year, it will be the third anniversary."
"What Watanabe-san means is..." Shirakawa Kaede seemed to understand a little.
However, before he could think about it, Ichiro Watanabe raised three fingers.
"After the third anniversary, Shirakawa Electric can go public."
Sure enough, he was waiting for me here.
No wonder he stopped asking about his actions in his hometown. Baichuan Feng didn't believe that the other party knew nothing about it.
Baichuan Feng even had reason to believe that the other party already knew everything.
I just wanted to remind myself today using the Fujitsu incident as an opportunity.
Dai-ichi Kangyo Bank has assets invested in Shirakawa Electric and to some extent has a certain interest relationship with it.
I wasn’t worried before, but if Baichuan Feng had his own bank.
Even local finance may be able to separate itself from the rest and go through the listing process independently in the future.
If that were the case, wouldn't all of Dai-ichi Kangyo Bank's previous investments have been wasted?
So at this moment, Watanabe Ichiro looked at Shirakawa Kaede with burning eyes.
I want to get a guarantee from him. What guarantee?
Shirakawa Feng took a deep breath and said, "Watanabe-san is right. Shirakawa Electric will indeed be able to go public in another year."
"Then..." Watanabe Ichiro continued to stare at him, "The listing of Shirakawa Electric..."
"I'd also like to ask Daiichi Kangin to help with the operation," Baichuan Feng gave his answer without hesitation.
Seeing that Shirakawa Kaede was so tactful, Watanabe Ichiro nodded with satisfaction.
“Companies going public must go through the financing phase. Even if the company has no funding needs, it is best to go through a round of financing.
Regarding this point, can Baichuan-san understand it?"
Baichuan Feng nodded. This was not unexpected to him.
In fact, there is no rigid requirement that a company must obtain financing before going public.
Companies that have angel round or even subsequent ABC rounds of financing.
At the beginning, it was because of lack of money, and in order to attract investors, it went through multiple rounds of financing.
After all, if you are not short of money, who would want to have their shares diluted?
Shirakawa Electric is not short of money either, so why does it need to raise funds before going public?
The answer lies in the person before you.
The purpose of financing is to adjust the equity structure. Without financing, how could Dai-ichi Kangyo Bank acquire shares in Shirakawa Electric?
Dai-ichi Kangyo Bank provided low-interest loans, land, and construction of the headquarters, and later worked with Fujitsu on behalf of SIC.
What is it for? Isn't it just to wait for the shares of Shirakawa Electric before it goes public?
Dai-ichi Kangyo Bank wants to absorb Shirakawa Electric into its own consortium, and financing is an essential step.
"Then regarding the pre-IPO financing..." Watanabe Ichiro thought for two seconds before offering his price. "Mr. Shirakawa, how do you think about 20%?"
Baichuan Feng's face changed, "Watanabe-san, Baichuan Electric has not relied on anyone's help since its establishment.
It has already started to make profits and does not need so much financing."
20%? You are kidding me. You are going to take away one fifth of my original shares just by opening your mouth.
Including the circulating shares after listing, the remaining Shirakawa Holdings may not be able to guarantee absolute control over Shirakawa Electric.
If Shirakawa Electric goes public, it will most likely be listed on the first section of the Tokyo Stock Exchange in the future.
The condition for listing on the first section of the Tokyo Stock Exchange is that the outstanding shares must be greater than or equal to 35%. Taking into account the 20% held by Dai-ichi Kangyo Bank, how much does Shirakawa Holdings have left?
Not to mention that by that time, there will definitely be more than one financial institution responsible for underwriting the stocks, so there will be even fewer left.
Then let’s take a look at the Japanese companies currently listed in the local market. How many of them are not absolutely controlled by themselves?
So Baichuan refused without even thinking about it.
“How about 15%?”
As if he knew that the asking price of 20% was too outrageous, Watanabe Ichiro did not hesitate and directly made a new offer.
Shirakawa Feng sighed, "Mr. Watanabe, I believe you are also aware of the business situation of Shirakawa Electric.
In the entire consumer electronics field, among similar listed companies, Shirakawa Electric's profit margin is definitely at the forefront.
It’s not too much to say that Shirakawa Electric is the best blue chip stock, right? "
Ichiro Watanabe nodded. He admitted this point, otherwise Dai-ichi Kangyo Bank would not have been so actively planning to acquire shares in Shirakawa Electric.
But he still had something to say. After all, Dai-ichi Kangin did not give nothing.
"Watanabe-san" But Shirakawa Feng didn't even give him a chance to speak, "10%! That's the most!
You know, if it weren't for the return to Dai-ichi Kangyo Bank, Shirakawa Electric wouldn't even have needed to go public."
In fact, Shirakawa Kaede is lying with his eyes open. Whether there is Dai-ichi Kangyo Bank or not, Shirakawa Electric will be listed in the future.
But nice words don't cost any money, so Baichuan Feng might as well flatter him.
"In addition to Dai-ichi Kangyo Bank, I also need to give some explanation to Nomura Securities."
Shirakawa Kaede once again brought out Nomura Securities to raise the banner, and the title of Japan's largest securities firm still works.
Sure enough, upon hearing this name, Ichiro Watanabe hesitated.
He was really afraid of pushing Baichuan Feng into a corner, so he simply chose not to go public.
After all, according to Dai-ichi Kangyo Bank's internal estimates, Shirakawa Electric's profit margin is quite astonishing.
Otherwise, it would be impossible to spend such a large sum of money to acquire a local bank.
"Then, happy cooperation!" After considering for a while, Watanabe Ichiro accepted the equity offered by Shirakawa Kaede.
As the executive director of Dai-ichi Kangyo Bank, he had enough power to finalize such a collaboration.
Moreover, during the growth of Shirakawa Electric, Dai-ichi Kangyo Bank really did not pay anything.
It’s already very good to be able to get such a high-quality stock.
In addition, the Dai-ichi Kangyo Bank Group's shareholding in internal companies is generally around 15%.
Those companies in which Dai-ichi Kangyo Bank has absolute control or is the largest shareholder are the core enterprises of the consortium.
As for the newly acquired shares of Shirakawa Electric, Dai-ichi Kangyo Bank is not in a hurry.
Hearing the other party's reply, Baichuan Feng also breathed a sigh of relief. "Happy cooperation!"
In this way, the two parties have reached a preliminary verbal agreement on the listing of Shirakawa Electric next year.
Prior to the listing, Dai-ichi Kangyo Bank would acquire a 10% controlling stake in Shirakawa Electric.
Of course, 10% of the shares require money to buy. The wealthy Dai-ichi Kangyo Bank did not even discuss it, given the market valuation of Shirakawa Electric at that time.
The meaning is obvious. No matter how much Shirakawa Electric is valued, Dai-ichi Kangyo Bank will take 10% of the shares.
Tsk, so arrogant and unreasonable.
Of course, in addition to Dai-ichi Kangyo Bank, what Shirakawa Kaede said before about Nomura Securities was not exaggeration.
Nomura Securities helped with the selection of Shirakawa Kaede's residence, the SIC Building, and even properties in other areas.
If Shirakawa Electric goes public, the other party will definitely be one of the financing targets.
Baichuan Feng had also made a verbal promise to this effect during several previous contacts.
However, the specific shares will definitely not be as much as Dai-ichi Kangyo Bank.
In addition, Shirakawa Kaede chose to raise funds before listing in consideration of post-listing.
Now that it is listed, Shirakawa Electric's shares must be circulated on the stock market.
With the endorsement of financial giants such as Dai-ichi Kangyo Bank and Nomura Securities, Shirakawa Electric can also give investors confidence.
After all, who doesn’t want their company’s stock price to be higher and the company’s market value to be higher?
It's all about profit.
After reaching a preliminary agreement with the other party on the future listing of Shirakawa Electric, Ichiro Watanabe left with satisfaction.
The reason why he came here today was not only because of Fujitsu.
Shirakawa Kaede's acquisition of Kitato Bank is also one of his key focuses.
In other words, Dai-ichi Kangyo Bank can accept the acquisition of Kitato Bank, but the acquisition of shares in Shirakawa Electric must be guaranteed.
So Kitato Bank became the perfect reason.
Under Watanabe Ichiro's careful planning, Shirakawa Kaede also made his own promise, and finally Daiichi Kangin achieved his goal as he wished.
None of these big conglomerates are worry-free. Baichuan Feng leaned back in his chair and thought quietly.
Among the major chaebols, Dai-ichi Kangyo Bank is considered to be the most moderate one.
If it were any other chaebol... well, he would probably have a headache.
